Grant Proposal: CowSwap <> ShapeShift Integration

Grant Title:
CowSwap <> ShapeShift Integration


Author:
GitHub: github. com/willyogo
LinkedIn: linkedin. com/in/willyog
Email: willy@foxfoundation. io


About You:
The roadmap for the ShapeShift DAO is ultimately driven by the community of FOX Token holders. Currently the community is aligned on–and rapidly progressing toward–the following mission and vision:

Vision: We envision a borderless financial system built on open, decentralized protocols.

Mission: We shall be the pathway into this borderless financial system; an open-source, multi-chain, self-custody crypto platform enabling billions to achieve financial sovereignty.

An in-progress version of the new ShapeShift is live at app.shapeshift. com. This version is open-source, supports multiple wallets, multiple blockchains (not limited to EVM-compatible networks), and is architected for complete decentralization.

The new ShapeShift, powered by an open-source stack including HDWallet, Unchained, Chain Adapters, Swapper, and Web repositories, will enable completely decentralized access to DeFi protocols across any chain. Additionally, the upcoming FOXChain will provide backend node infrastructure for any interface that wants to be truly decentralized, including ShapeShift’s.

Finally, through integrations with DEX and DEX aggregator protocols such as CowSwap, THORChain, and Osmosis (in-progress), ShapeShift enables users to seamlessly move crypto assets across chains with no KYC, custody, nor added fees. With the understanding that both the decentralized interface and blockchain data infrastructure are imperative to bringing DeFi to the masses, the ShapeShift community is actively coordinating to build this.


Additional Links:
shapeshift. com
app.shapeshift. com
github. com/shapeshift
twitter. com/shapeshift
play.google. com/store/apps/details?id=com.shapeshift.droid_shapeshift
apps.apple. com/us/app/shapeshift-crypto-platform/id996569075


Grant Category:

  • Integrations and protocol order flow
  • Decentralization

Grant Description:
Phase one (complete)

  1. Integrated CowSwap as the default DEX protocol for Ethereum mainnet for all trades besides unwrapped ETH (we decided to route ETH trades through 0x rather than prompting users to wrap their ETH)
  2. Updated trading UI to account for differences between CowSwap and 0x’s UX
  3. Added CowSwap to ShapeShift’s open-source Swapper library, which any app can use to quickly implement support for a growing list of DEX protocols and aggregators, including 0x, CowSwap, THORChain, and Osmosis.

Phase two (in progress)

  1. Polishing the CowSwap integration to address the issues (github. com/cowprotocol/cowswap/issues/956#issuecomment-1225812939) identified by CowSwap team and add additional functionality supported by the protocol such as custom recipient address
  2. Announcing and promoting the CowSwap integration (announcement post drafted in english (docs.google. com/document/d/1kqPS1pCOCoxWUkSIjst22Q8Vs9Dt8RCeNShtib9zy64/edit?usp=sharing), portugues (docs.google. com/document/d/1fffQTZa7qQlksn8-3Ghm5Ev-MMV6UzqjEvIw0zHv0ns/edit), spanish (onedrive.live. com/view.aspx?resid=B713543B5EB91EBB!3979&ithint=file%2cdocx&authkey=!AFJdNglwc1ZIs7c), and french (docs.google. com/document/d/1-UQs6RMO8y2ejy69D3pC7huxdPH9EdxYeS_tcC3dmI4/edit?usp=sharing))
  3. Launching THORChain and Osmosis trading integrations alongside CowSwap and routing all ERC20<>ERC20/ETH swaps on Ethereum mainnet through CowSwap

Phase three (future milestones)

  1. Route trades from unwrapped ETH to CowSwap once this feature is supported by the protocol
  2. Integrate CowSwap as the default DEX protocol for Gnosis Chain
  3. Once CowSwap’s affiliate revenue program is live, reward users who generate COW for the DAO’s Treasury proportionally with FOX Tokens

Grant Goals and impact:
Our goal is to make ShapeShift the best interface to the decentralized universe and to give users around the world access to the best liquidity, protection from MEV, and drive more coincidence-of-wants. Further, our app will provide a free, open-source, community-owned, and soon fully decentralized/unstoppable interface to the CowSwap protocol.


Milestones:

  1. Phase one (complete)
  2. Phase two (in progress)

Grant Timeline:
Phase one is complete, and Phase two is estimated to be completed in early November


Funding Request:
First milestone: 5k xDAI, 50k COW (done, paid once proposal approved)

Second Milestone: 5k xDAI, 50k COW (will be paid upon completion)

All COW tokens granted will be subject to 12 months of vesting beginning from the moment that a ShapeShift DAO community member reports to the COW Grant committee that the milestone has been achieved.

Volume milestones*:

5M volume: 50k COW
15M volume: 100k COW
100M volume: 200k COW

*Volume milestones must be surpassed by December 31, 2023 to be eligible for grant funding.


Budget Breakdown:
The xDAI will reimburse a portion of the funds ShapeShift DAO has already spent and plans to spend to compensate the product, engineering, operations, and marketing contributors responsible for developing, testing, and promoting the integration.

The COW tokens will be held in the DAO’s Treasury to give the DAO exposure to Cow Protocol’s success and to align incentives between foxes and cows. Liquidating these tokens would require passing a formal governance proposal in ShapeShift DAO.


Gnosis Chain Address (to receive the grant):
0xb0E3175341794D1dc8E5F02a02F9D26989EbedB3


Other Information:
One of the main challenges that has caused this integration to take longer than anticipated has been handling the nuances between CowSwap and the other DEXs we support or will soon support in the same interface (0x, THORChain, and Osmosis).

As we continue to execute on the other priorities on our roadmap, we expect the volume of trades routed through CowSwap from ShapeShift users to increase significantly.


Referral:
Huge shoutout to Chen for being an excellent point of contact throughout the integration process and for referring us to the grant committee.


Terms and conditions:

By applying for this grant, I agree to be bound by the CowDAO Participation Agreement and the COWDAO Grant Terms and Conditions .

6 Likes

Love the proposal
I think the values and visions of CoW Swap and Shapeshift are aligned.
Empowering the user by providing access to the open financial layer while offering great UX and protection.
I think that the funding structure is highlighting this alignment with a significant payment done in COW that will be held in Shapeshift’s treasury and will allow the community to participate in CoW governance. In addition a performance based model is in line with CoW Protocol’s ultimate value which is order flow and volume.

I think that keeping the integration up to date with the latest features and updates of CoW Protocol is very important and the milestones of this grant reflects this. Having said that, this should not be seen as an obligation to fund future development from CoW Grants.

Generally signaling my support
Still looking forward for more community feedback, and additional committee members to express their thoughts

3 Likes

Thank you @middleway.eth, couldn’t agree more :fox_face: :purple_heart: :cow:

This is a good integration proposal and agree with @middleway.eth summary. I am signalling my support.

1 Like

In principle I agree with grants for integrations, though I am hesitant about about using grants to pay out milestones that have already been implemented when this has not been discussed prior with the grants committee by application for our deliberation.

With regards to volume based incentives, this is a good idea, and taking payment in COW does go some way to ensuring alignment. For these kinds of “bounties” / “bribes”, I’d advocate that payment for meeting these thresholds be done by means of vesting tokens.

In general, I’m signalling my support, on the provision that some modifications are made taking into account feedback that I’ve raised.

2 Likes

cool :), sounds great.

1 Like

thanks for the feedback @mfw78, happy to update the proposal to include 12 months of vesting for the COW :handshake:

thank you both for the support @netrunner.eth @cheerszzl :pray:

I want to propose the transaction that will fund the grant already, as all feedback was addresses.

Would like to add two last feedback points on my end before that:

I propose to remove this from the second milestone and add it as a general commitment. I wouldn’t want that the second milestone will depend on CoW DAO to ship a full referral program.

I think we should add an expiry date to the volume milestones just to eliminate edge cases (like Shapeshift asking for a payout in the very far future). I think until the end of 2023 is fair?

2 Likes

Really appreciate all of your feedback and support @middleway.eth! We’re amenable to both of these suggestions and ready to move forward. I’ve updated the proposal text to address the following feedback:

  1. Added 12 months of vesting for all COW grants
  2. Added a deadline 12/31/2023 to the volume milestones

The line about FOX rewards is already part of Milestone 3, so I left as is.

Please let us know if we missed anything. Otherwise, looking forward to announcing :rocket:

Grant Title:
CowSwap <> ShapeShift Integration


Author:
GitHub: github. com/willyogo
LinkedIn: linkedin. com/in/willyog
Email: willy@foxfoundation. io


About You:
The roadmap for the ShapeShift DAO is ultimately driven by the community of FOX Token holders. Currently the community is aligned on–and rapidly progressing toward–the following mission and vision:

Vision: We envision a borderless financial system built on open, decentralized protocols.

Mission: We shall be the pathway into this borderless financial system; an open-source, multi-chain, self-custody crypto platform enabling billions to achieve financial sovereignty.

An in-progress version of the new ShapeShift is live at app.shapeshift. com. This version is open-source, supports multiple wallets, multiple blockchains (not limited to EVM-compatible networks), and is architected for complete decentralization.

The new ShapeShift, powered by an open-source stack including HDWallet, Unchained, Chain Adapters, Swapper, and Web repositories, will enable completely decentralized access to DeFi protocols across any chain. Additionally, the upcoming FOXChain will provide backend node infrastructure for any interface that wants to be truly decentralized, including ShapeShift’s.

Finally, through integrations with DEX and DEX aggregator protocols such as CowSwap, THORChain, and Osmosis (in-progress), ShapeShift enables users to seamlessly move crypto assets across chains with no KYC, custody, nor added fees. With the understanding that both the decentralized interface and blockchain data infrastructure are imperative to bringing DeFi to the masses, the ShapeShift community is actively coordinating to build this.


Additional Links:
shapeshift. com
app.shapeshift. com
github. com/shapeshift
twitter. com/shapeshift
play.google. com/store/apps/details?id=com.shapeshift.droid_shapeshift
apps.apple. com/us/app/shapeshift-crypto-platform/id996569075


Grant Category:

  • Integrations and protocol order flow
  • Decentralization

Grant Description:
Phase one (complete)

  1. Integrated CowSwap as the default DEX protocol for Ethereum mainnet for all trades besides unwrapped ETH (we decided to route ETH trades through 0x rather than prompting users to wrap their ETH)
  2. Updated trading UI to account for differences between CowSwap and 0x’s UX
  3. Added CowSwap to ShapeShift’s open-source Swapper library, which any app can use to quickly implement support for a growing list of DEX protocols and aggregators, including 0x, CowSwap, THORChain, and Osmosis.

Phase two (in progress)

  1. Polishing the CowSwap integration to address the issues (github. com/cowprotocol/cowswap/issues/956#issuecomment-1225812939) identified by CowSwap team and add additional functionality supported by the protocol such as custom recipient address
  2. Announcing and promoting the CowSwap integration (announcement post drafted in english (docs.google. com/document/d/1kqPS1pCOCoxWUkSIjst22Q8Vs9Dt8RCeNShtib9zy64/edit?usp=sharing), portugues (docs.google. com/document/d/1fffQTZa7qQlksn8-3Ghm5Ev-MMV6UzqjEvIw0zHv0ns/edit), spanish (onedrive.live. com/view.aspx?resid=B713543B5EB91EBB!3979&ithint=file%2cdocx&authkey=!AFJdNglwc1ZIs7c), and french (docs.google. com/document/d/1-UQs6RMO8y2ejy69D3pC7huxdPH9EdxYeS_tcC3dmI4/edit?usp=sharing))
  3. Launching THORChain and Osmosis trading integrations alongside CowSwap and routing all ERC20<>ERC20/ETH swaps on Ethereum mainnet through CowSwap

Phase three (future milestones)

  1. Route trades from unwrapped ETH to CowSwap once this feature is supported by the protocol
  2. Integrate CowSwap as the default DEX protocol for Gnosis Chain
  3. Once CowSwap’s affiliate revenue program is live, reward users who generate COW for the DAO’s Treasury proportionally with FOX Tokens

Grant Goals and impact:
Our goal is to make ShapeShift the best interface to the decentralized universe and to give users around the world access to the best liquidity, protection from MEV, and drive more coincidence-of-wants. Further, our app will provide a free, open-source, community-owned, and soon fully decentralized/unstoppable interface to the CowSwap protocol.


Milestones:

  1. Phase one (complete)
  2. Phase two (in progress)

Grant Timeline:
Phase one is complete, and Phase two is estimated to be completed in early November


Funding Request:
First milestone: 5k xDAI, 50k COW (done, paid once proposal approved)

Second Milestone: 5k xDAI, 50k COW (will be paid upon completion)

All COW tokens granted will be subject to 12 months of vesting beginning from the moment that a ShapeShift DAO community member reports to the COW Grant committee that the milestone has been achieved.

Volume milestones*:

5M volume: 50k COW
15M volume: 100k COW
100M volume: 200k COW

*Volume milestones must be surpassed by December 31, 2023 to be eligible for grant funding.


Budget Breakdown:
The xDAI will reimburse a portion of the funds ShapeShift DAO has already spent and plans to spend to compensate the product, engineering, operations, and marketing contributors responsible for developing, testing, and promoting the integration.

The COW tokens will be held in the DAO’s Treasury to give the DAO exposure to Cow Protocol’s success and to align incentives between foxes and cows. Liquidating these tokens would require passing a formal governance proposal in ShapeShift DAO.


Gnosis Chain Address (to receive the grant):
0xb0E3175341794D1dc8E5F02a02F9D26989EbedB3


Other Information:
One of the main challenges that has caused this integration to take longer than anticipated has been handling the nuances between CowSwap and the other DEXs we support or will soon support in the same interface (0x, THORChain, and Osmosis).

As we continue to execute on the other priorities on our roadmap, we expect the volume of trades routed through CowSwap from ShapeShift users to increase significantly.


Referral:
Huge shoutout to Chen for being an excellent point of contact throughout the integration process and for referring us to the grant committee.


Terms and conditions:

By applying for this grant, I agree to be bound by the CowDAO Participation Agreement and the COWDAO Grant Terms and Conditions .

2 Likes

I have updated the OP to match this latest version.
Will need to look into vesting contracts before we can move forward with the payment for the first milestone.

1 Like

sounds great, thanks @middleway.eth :pray: we’re open to whichever vesting contracts you all recommend. Superfluid supports Gnosis Chain and has a nice UI. I see COWx is already available in their app too.

Finally, first milestone of this grant was funded with those two transactions 1, 2

Looking forward for future milestones as the native ETH flow is just around the corner

1 Like

Woo thanks @middleway.eth! Upward and onward to future miled tones and beyond :fox_face: :cow: :rocket:

BTW, here’s ShapeShift’s announcement of the integration today in case anyone missed it: https://twitter.com/ShapeShift/status/1600181134759006217